The Government Service Insurance System (GSIS) will provide emergency loans to members and retirees badly hit by Wednesday’s magnitude 7 earthquake.
In a statement, GSIS President and General Manager Wick Veloso said the state pension fund for government employees and retirees allocated 5.4 billion pesos for emergency loans this year.
Veloso said once a state of disaster has been declared in the affected areas, affected members and retirees residing in those areas could apply for emergency loans.
“We will ensure our members and retirees have financial support through our emergency loan to get them through the crisis. We are also in contact with all public entities affected by the earthquake to determine if there are any damaged government properties that could claim insurance from GSIS,” said Veloso.
“GSIS members who have an existing Emergency Loan balance may borrow up to P40,000 to pay their previous Emergency Loan balance and still receive a maximum of P20,000 net. Those without an existing emergency loan can apply for 20,000 pesos,” GSIS said.
“Pensioners can also apply for a loan of 20,000 pesetas,” she added.
Eligible applicants, according to GSIS, are “Eligible applicants on active duty and not on unpaid leave; have paid premiums for at least three months within the last six months; have no pending administrative or criminal proceedings; and have a net take-home income of not less than P5,000 after deducting any required monthly obligations.”
GSIS’ emergency loans carry a precalculated interest rate of 6 percent per annum, payable in 36 equal monthly installments.
“It’s also covered by amortization insurance, which treats the loan as fully paid in the event of the borrower’s death, provided the loan payment is current,” according to the GSIS.
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